In a PERT network, a/an _____ is the latest time an activity can finish without delaying
the entire project.
a. late start
b. late finish
c. on time finish
d. early start
e. late start
Purchasers impact price at the time they set the specifications for the product or service.
a. True
b. False
EDI requires investment in general purpose hardware that could be used for a variety of
purposes.
a. True
b. False
Although firms are increasingly focusing on cost versus price, price performance
measures are no long popular.
a. True
b. False
The use of a pipeline is usually part of the decision tradeoff between transportation
modes.
a. True
b. False
Organizations are constantly looking for people who have developed the skills
necessary to deal with the narrow variety of tasks faced by purchasing.
a. True
b. False
When preparing for a negotiation with a supplier located in another country, companies
must invest in substantial extra time and effort in planning for the negotiation to
accommodate new language translations, travel, modes of transportation, and other
foreign business requirements.
a. True
b. False
The term _____ refers to the set of performance criteria and products and processes an
organization intends to develop or manufacture.
a. concurrent engineering
b. early supplier involvement
c. process loss
d. technology roadmap
e. R&D plan
The market-share model is also known as the penetration pricing model and is an
aggressive pricing approach for efficient producers because price is a direct function of
cost.
a. True
b. False
_____ involves giving preferential treatment to suppliers that are also customers of the
buying organization.
a. Personal buying
b. Reciprocity
c. Sharp practices
d. Accepting supplier favors
e. Conflicts of interest
Few purchasers expect potential suppliers to have adopted quality systems based on
MBNQA or ISO 9000 criteria.
a. True
b. False
Because of information transparency, product and service innovations from suppliers
will be decreasingly important to competitive success.
a. True
b. False
In the _____ of the process of supplier segmentation, the supplier views the buyer as an
unimportant customer, and to make the situation worse, the volume the buyer has with
this supplier is insignificant to the supplier.
a. NUISANCE segment
b. CORE segment
c. EXPLOIT segment
d. DEVELOP segment
e. None of the above.
The _____ clause in a contract ensures that all information, technology, and so on
shared between the parties remains confidential and is not shared with other customers
or suppliers.
a. assignment and contracting
b. liability
c. third-party rights
d. confidentiality
e. intellectual property
_____ is defined as the continual monitoring of the strength of suppliers financial
condition to ensure their ability to meet the purchasers performance requirements for
products or services.
a. Operational risk management
b. Sole sourcing
c. Financial risk management
d. Multiple sourcing
e. None of the above.
A _____ contract should be used in cases where the parties cannot accurately predict
labor or materials costs and quantities to be used prior to the execution of the purchase
agreement.
a. fixed-price with escalation
b. firm fixed price
c. cost sharing
d. cost-based
e. fixed-price with redetermination
Given the global nature of many businesses, especially where customer growth is
coming from new and emerging markets, there is an increasing need for a centralized
focus to meet unique customer needs.
a. True
b. False
Referent power is most successful in negotiation when the referents are aware that a
counterpart identifies with or has an attraction to them.
a. True
b. False